Short EUR/USD with caution...

19 March 2017/11:25 a.m. ET

EUR/USD Daily [last 1.0736]: The minor wave [ii] rally into the high on Friday at 1.0782 may be complete—representing a very deep retracement of wave [i] down. We are stretching into make or break time for the US dollar. A rally above 1.0909 changes the view to bullish here and bearish for the US dollar. The minor c wave extension into the high was right on an equality target as seen more clearly in the 4-hour chart on the next page. At its current position, the pair appears to be a very good risk/reward short setup.

EUR/USD 4-Hourly: Counting the rally into Wave 2 as a three wave [a]-[b]-[c]. Note minor wave [c] breaking into three symmetrical waves with minor a being equal to minor c at 1.0784—the rally high so far. Momentum is turning down [as you can see in the top pane of the chart]. Stay tuned. We like the short side here…

Black Swan Forex subscribers shorted EUR/USD today a 1.0749...

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